VALUATION HIGHLIGHTS

1. Postpaid Mobile Plans & Phones constitute 82% of the Trefis price estimate for T-Mobile's stock.
2. Prepaid Mobile Plans & Phones constitute 10% of the Trefis price estimate for T-Mobile's stock.

WHAT HAS CHANGED?

Latest Earnings: Q2 FY'26

T-Mobile reported Q2 FY'26 total revenue of $20.8 billion, representing a 4.2% year-over-year increase, driven by strong postpaid phone subscriber growth and expanding high-speed internet adoption. Diluted EPS reached $2.28, up 14.0% from $2.00 in the prior-year period, supported by operational efficiencies and lower equipment cost drag.

Note: T-Mobile's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.

Expansion in Fixed Wireless and Fiber Broadband Partnerships

T-Mobile continues to expand its broadband presence through 5G Home Internet and targeted fiber joint venture investments. The company added over 400,000 high-speed internet subscribers during the quarter, using mid-band 5G capacity to gain share from legacy cable providers across residential and business markets.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of T-Mobile's value that present opportunities for upside or downside to the current Trefis price estimate:

Postpaid Wireless Services

• Postpaid Phone ARPU Growth: T-Mobile's average revenue per user benefits from customer migration to premium tier rate plans. Upside exists if premium tier adoption accelerates, while pricing competition from national peers presents downside risk.


• 5G Network Coverage and Customer Retention: Nationwide mid-band 5G deployment supports low postpaid phone churn. Expanded rural footprint provides subscriber volume upside, whereas aggressive promotional discounting across the sector could pressure profit margins.

For additional details, select a division from the interactive Trefis split for T-Mobile at the top of the page.

BUSINESS SUMMARY

T-Mobile US is a major telecommunications operator in the United States, providing wireless voice, messaging, and data services, broadband connectivity, and mobile devices to consumer and enterprise customers nationwide.

SOURCES OF VALUE

Postpaid wireless services represent T-Mobile's primary source of value due to recurring service revenue and expanding subscriber scale.

Mid-Band 5G Infrastructure Advantage

T-Mobile maintains an established mid-band 5G network covering over 300 million people. This spectrum and coverage position drives subscriber acquisition, reduces customer churn, and supports expansion into enterprise contracts.

High-Speed Internet Monetization

By deploying Fixed Wireless Access over surplus 5G capacity, T-Mobile generates high-margin broadband subscription revenue with minimal additional infrastructure spending per user added.

KEY TRENDS

Convergence of Wireless and Wireline Connectivity

Telecom providers are bundling mobile service with fixed wireless or fiber broadband to lower churn and increase long-term customer life value across consumer accounts.

Capital Allocation and Shareholder Returns

T-Mobile maintains a structured capital return strategy combining share repurchases and regular dividend payments funded through strong ongoing free cash flow generation.